Rolls-Royce Power Systems with a stable business year in 2013
Posted on March 11, 2014
Today’s Rolls-Royce Power Systems AG delivered a good market performance in 2013 despite many challenges.
- Stable performance despite difficult market conditions in 2013
- Cooperation with Rolls-Royce bearing fruit
- Global expansion of company locations, location Friedrichshafen strengthened
Friedrichshafen, March 11, 2014. Today’s Rolls-Royce Power Systems AG delivered a good market performance in 2013 despite many challenges. “Our business performance last year was stable – we will nevertheless have to reduce our costs even further to be competitive also in the future,” said Dr Ulrich Dohle, the company’s CEO and Chairman of the Executive Board.
The stable business performance achieved by the specialist for large engines, drive and propulsion systems, and distributed energy systems in 2013 was primarily the result of orders from the marine and industrial sectors. The expectations of benefits from synergy effects with Rolls-Royce were fulfilled: the British Royal Navy, for example, decided to equip its new Type 26 frigates with a propulsion system consisting of mtu diesel gensets and a gas turbine from Rolls-Royce. The Chinese shipyard COSCO also placed an order for a solution that combines products from both companies: the shipyard will equip a ship designed by Rolls-Royce with diesel gensets from Friedrichshafen.
Business proved difficult in the mining and oil and gas production sectors, where investments declined significantly as a result of surplus capacity and low raw material prices. The energy business in particular felt the effects of the overall moderate economic growth in the BRIC countries.
Following the takeover by Rolls-Royce and Daimler and full consolidation in the results of Rolls-Royce, the business figures of the former Tognum AG, including its new subsidiary Bergen Engines, are published this year for the first time in the annual report of Rolls-Royce in the “Power Systems” segment. This segment achieved underlying revenues amounting to 2.83 Billion British Pounds (3.34 Billion Euros) in 2013. This means a slight decrease in underlying revenues of 0.5 percent compared to 2012.
This stable development, despite adverse market conditions in some sectors, is due to Rolls-Royce Power Systems AG’s wide-ranging product portfolio and the global spread of its business activities: “This wide strategic orientation makes us less susceptible to negative developments in individual economic regions or application areas,” said Dr Dohle.
To continue to grow and be successful in the marketplace, Rolls-Royce Power Systems invests in research and development and in expanding its locations. The focus is on further developing engines to comply with future emission regulations and strengthening its Friedrichshafen location. In 2013, a new production hall was erected there for the manufacture of connecting rods, for example. Also a new state of the art engine test area is currently established in Plant 1. For mtu Onsite Energy, a new building for sales and applications is currently under construction. These activities are designed to enable the company to deal with whatever challenges lie ahead more efficiently and more effectively.
Rolls-Royce Power Systems AG is represented at over 1,200 locations on all continents with its 33 subsidiaries and had a workforce of around 11,500 as of December 31, 2013.